Some stuff I am reading today morning:
Price hikes fuel discounts on petrol cars (FinancialExpress)
Indian Buffett goes shopping (BS)
Why Congress has decided to go for Jagan’s jugular (ToI)
Email, wiretaps link Gupta to Rajaratnam (Reuters)
Narasimha Rao:The man who reinvented India (The National)
Bracing for a Greek exit (DailyReckoning)
Happy people make terrible traders (PsyFi)
The Govt hiked petrol prices by Rs.7.50 Rs/Liter.
The markets reacted as usual by selling the news.The price action of the PSU refiners were:
IOC: -1.32%
HPCL: -1.74%
BPCL: -0.03%
And this on a day when the Nifty is up by 1.77% !!
No wonder the Indian Rupee is getting crushed
Over the last two years, India has been inflating at roughly 10% per annum. The dollar has been inflating at roughly 2% per annum. So, it is only natural that the exchange rate will depreciate; the nominal exchange rate which is correcting from the fact that the rupee has been losing value faster than the dollar. By my own calculation compared to two years ago to now, say two years ago Rs 44-45 now I would have expected it to be between Rs 51-54, roughly in that range-Kaushik Basu, Chief Economic Advisor to GoI said in an interview